Canadian Superior Oil Ltd. v. Concord Insurance Co. Ltd. - Witwatersrand Local Division (Van Schalkwyk J.) - 1992 (4) S.A. 263

Marine insurance - “Pay to be paid” clause

The defendant insurers had issued a marine insurance policy to shippers of a cargo of sulphur. During the course of the voyage the sulphur caused massive corrosion damage to the holds, tank tops and bulkheads of the vessel. The shipowners sued inter alia the plaintiff sellers of the sulphur. The action was compromised on the basis that the plaintiffs undertook to pay a stipulated amount to the shipowners.